Apple: way more than just the iPhone

March toward $1,000,000: Weeks 15 and 16 (Nov. 5-16)

Apple is one of those companies. You know, the kind people either love or love to hate. There really is no in-between. It has its share of fans – people who will be loyal to the brand no matter what – but has plenty of people on the other end of the spectrum as well.

I happen to be a fan. I like Apple products … and I like it as an investment as well.

People tend to think the tech giant with a trillion-dollar valuation has peaked, but I think it’s just getting warmed up. Others say it’s a one-trick pony. Obviously, I don’t agree with that either. The iPhone is as sticky as they come – people who own one don’t tend to switch to something else – and they have no problem upgrading year after year.

That’s certainly a plus, but, in my opinion, the iPhone is only the tip of the iceberg for Apple. The iPhone gets the company its foot in the door. After that, though, Apple has more than a few products it can push on to an already loyal consumer base.

My favorites include the subscription-based things like Apple Music and the iCloud service. I pay $0.99 a month for extra iCloud storage without batting an eye, and I’d imagine I’m not alone. The music service is pretty nice as well, offering something akin to Spotify. On top of that, rumor has it Apple is planning to launch a video service to compete with Netflix and Amazon Prime. I personally think the space is getting ridiculously crowded thanks to the additions of Disney and AT&T’s upcoming services. But, with the consumer base and resources at its disposal, I’d give Apple as good a chance as any company at competing. 

Not to mention people are still buying Macs, iPads, Apple TVs and Apple Watches. I have all of those products, and use them almost daily. These days, though, I prefer to spend my money on the stock.

This Week’s Purchase: 2 Shares of Apple

I picked up two shares of Apple for a combined $398.14 over the course of the last two weeks. I didn’t get the shares as cheap as I would have had I waited a few more days, but I still think anything under $200 is a good deal at the moment.

The profit margin is solid (22.46%), debt-to-capital ratio is manageable (51.56%) and EPS is on the rise.

It’s also a nice little dividend-growth stock. Apple has been boosting its payout for five straight years at an average rate of almost 11%. It also has a low payout ratio (24%), meaning the raises shouldn’t stop anytime soon.

With a $2.92 annualized dividend (1.51% yield), the two shares balloon my projected forward annual income by $5.84.

This Week’s Dividends: Apple, AbbVie and Lowes

Apple paid me $3.65 for five shares ($0.73/share) – a payment which automatically turned into 0.01938 shares of the company thanks to my dividend-reinvestment plan. 

AbbVie passed along $1.92 for the two shares I own ($0.96/share), which purchased another 0.0219 shares.

Lowes also paid me a small sum – $0.48 for the one share I own. That dividend bought another 0.00489 shares of the company.

Stats (Through 16 Weeks)

Portfolio Value: $5,922.73

Overall Gain/Loss: -$214.67

Estimated Annual Income: $143.80

Total Number of Positions: 23 (here’s my portfolio)

Previous Posts

Week 14

Weeks 12 and 13 

March on!

Leave a Reply

%d bloggers like this: